March 28, 2019 - The Airports of Montenegro Company (ACG) last year doubled its earnings and realized a new record in the physical volume of air traffic in Tivat and Podgorica.
"The profit of ACG before tax in 2017 amounted to EUR 5,166,058, while last year, according to preliminary data, we had a pre-tax profit of around EUR 10 million," ACG Executive Director Danilo Orlandić ("News") SD).
He stressed that accurate data on earnings in 2018 could be reported in a few days, depending on the calculation of the funds that need to be reserved for some current legal disputes, but that it is roughly €10 million in profit.
There were 2,445,542 passengers in Montenegrin airports during 2018, representing a 12.4% increase compared to the previous year (and 14,731 aircraft, which is 6.5% more than in 2017).
The Airports of Montenegro's management, which received the new board of directors led by Dragoljub Bulatovic (DPS) in 2018, in the grip of political and economic struggles about calling for a 30-year lease in the concession, suffered a lot of criticism from some of the circles in the government. Due to alleged inefficiency state-owned airlines in the management of airports, which, according to concession advocates, is the main reason why this controversial arrangement should take place. On the other hand, a good deal of Montenegrin experts and the public believes that airport management should be kept in the hands of the state. This is also the most significant regional analyst and consultant Alen Šćuric from Zagreb who analyzed in detail the business and economic indicators of airport work compared to the airports of the region under the state or management of the concessionaires, after which ACG as the operator of the airports in Tivat and Podgorica labeled as "extremely successful".
From ACG's management data on last year's increase in physical traffic volume compared to 2017 explain the influence of several factors: the arrival of new airline companies, the opening of new airline routees and a good tourist season.
"The improvement of cooperation with airlines for a number of years has continued, and cooperation with new carriers has been established for carriers not hitherto flying to Montenegro," Orlandić said. He added that last year, there are eight new airline companies: Tui UK & Ireland, Braathens Aviation, Brussels Airlines, Fan Air, SkyUp, Air Alan, Rusline Air, and Azerbaijan Air.
"In 2018, traffic from Montenegrin airports took place in more than 30 countries and 68 destinations. Compared to 2017, Montenegro last year was linked to 14 new destinations: Minhen, Leipzig, Stuttgart, Wroclaw, Goteborg, Birmingham, Nantu, Ajndhoven, Lincom, Baku, Košice, Poprad, Grodno, and Brive La Gaillarde," said Orlandic.
Podgorica airport served 1,208,525 passengers (14.6% increase compared to the same period in 2017) and 7,915 aircraft (up by 5.4% compared to 2017). There are 1,245,999 passengers at Tivat Airport (10.3% increase compared to 2017) and 6,816 planes (7.7% increase compared to 2017).
Although last year's record-breaking profit was achieved, ACG managed to realize a significant investment cycle, so according to Orlandić, that firm, under UNDP's agreement, invested $4,501,044 for the construction of Terminal 2 at Tivat Airport as well as purchase of complete equipment for new facilities in Podgorica and Tivat, arranging space in Tivat, drafting of project documentation and the like. An additional €2,363,413 ACG was invested through the procurement of new equipment, regular maintenance of facilities and techniques and payment of various services. All investments are realized exclusively from their own ACG funds, without loans.
Text by Sinisa Lukovic, Boka News
